Adjusted EBITDA* increased 23.3% to $84.4 million from $68.4 million.
As a percentage of total revenues, Adjusted EBITDA increased
approximately 190 basis points to 19.1%.

* A reconciliation of EBITDA and Adjusted EBITDA to net income, the
most directly comparable financial measure presented in accordance with
GAAP, is set forth in the attachment to this release.

“We are encouraged by the overall strength and ongoing momentum of our
business,” said Steve King, Chief Executive Officer of Dave & Buster’s,
Inc. “Despite a challenging external macro environment, we delivered
strong same store sales growth, which led to a 19% increase in Adjusted
EBITDA during the third quarter. We continue to accelerate our growth
plans, having opened our second small format prototype in September and
a new Dallas, TX flagship store in December. Our team remains committed
to driving strong returns through new development, as well as expanding
our overall new unit potential by utilizing our small format as a
complement to our traditional prototype.”

Review of Third Quarter 2012 Operating Results

Total revenues increased 8.9% to $131.1 million in the third quarter of
2012 compared to $120.3 million in the third quarter of 2011. Across all
stores, Food and Beverage revenues increased 6.0% and Amusements and
Other revenues increased 11.8%.

Comparable store sales increased 3.9% in the third quarter of 2012. The
increase was driven by a 4.3% increase in comparable walk-in sales and a
0.4% increase in comparable special events business sales.
Non-comparable store revenues increased $6.4 million during the third
quarter.

Adjusted EBITDA increased 18.7% to $18.0 million in the third quarter of
2012 from $15.1 million in last year’s third quarter. As a percentage of
total revenues, adjusted EBITDA increased approximately 110 basis points
to 13.7%.

Development

During the third quarter, one new Dave & Buster’s store opened in Orland
Park, IL. The Company has opened three new stores year-to-date,
including a relocation in Dallas, TX, which re-opened subsequent to the
third quarter. One additional store is scheduled to open in the fourth
quarter of 2012. The Company also anticipates opening five new stores
during 2013.

Conference Call

Management will hold a conference call to discuss third quarter 2012
results today at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). The
conference call can be accessed over the phone by dialing 1-888-230-5498
or for international callers by dialing 1-913-312-0719. A replay will be
available after the call for one year beginning at 1:00 p.m. Central
Time (2:00 p.m. Eastern Time) and can be accessed by dialing
1-877-870-5176 or for international callers by dialing 1-858-384-5517;
the passcode is 8129949.

Additionally, a live and archived webcast of the conference call will be
available at www.daveandbusters.com
under the Investor Relations section.

About Dave & Buster’s, Inc.

Founded in 1982 and headquartered in Dallas, Texas, Dave & Buster’s is
the premier national owner and operator of 60 high-volume venues that
offer interactive entertainment options for adults and families, such as
skill/sports-oriented redemption games and technologically advanced
video and simulation games, combined with a full menu of high quality
food and beverages. Dave & Buster’s currently has stores in 25 states
and Canada. For additional information on Dave & Buster’s, please visit www.daveandbusters.com.

The statements contained in this release that are not historical
facts are forward-looking statements.These forward-looking
statements involve risks and uncertainties and, consequently, could be
affected by our level of indebtedness, general business and economic
conditions, the impact of competition, the seasonality of the company’s
business, adverse weather conditions, future commodity prices, guest and
employee complaints and litigation, fuel and utility costs, labor costs
and availability, changes in consumer and corporate spending, changes in
demographic trends, changes in governmental regulations, unfavorable
publicity, our ability to open new stores, and acts of God.

DAVE & BUSTER’S, INC.

Condensed Consolidated Balance Sheets

(in thousands)

ASSETS

October 28, 2012

January 29, 2012

(unaudited)

(audited)

Current assets:

Cash and cash equivalents

$

49,693

$

33,684

Other current assets

42,389

41,310

Total current assets

$

92,082

$

74,994

Property and equipment, net

326,820

323,342

Intangible and other assets, net

376,278

380,326

Total assets

$

795,180

$

778,662

LIABILITIES AND STOCKHOLDERS' EQUITY

Total current liabilities

$

98,072

$

86,643

Other long-term liabilities

100,048

104,987

Long-term debt, less current liabilities, net unamortized discount

344,263

345,167

Stockholders' equity

252,797

241,865

Total liabilities and stockholders' equity

$

795,180

$

778,662

DAVE & BUSTER’S, INC.

Consolidated Statements of Operations

(dollars in thousands)

(unaudited)

13 Weeks Ended

13 Weeks Ended

October 28, 2012

October 30, 2011

Food and beverage revenues

$ 63,159

48.2%

$ 59,567

49.5%

Amusement and other revenues

67,907

51.8%

60,755

50.5%

Total revenues

131,066

100.0%

120,322

100.0%

Cost of products

26,221

20.0%

24,081

20.0%

Store operating expenses

78,330

59.7%

73,271

60.9%

General and administrative expenses

12,242

9.3%

8,279

6.9%

Depreciation and amortization

15,746

12.0%

13,578

11.3%

Pre-opening costs

1,089

0.8%

587

0.5%

Total operating expenses

133,628

101.8%

119,796

99.6%

Operating income (loss)

(2,562)

-1.8%

526

0.4%

Interest expense, net

7,979

6.1%

8,097

6.7%

Loss before income tax benefit

(10,541)

-7.9%

(7,571)

-6.3%

Income tax benefit

(8,920)

-6.8%

(3,124)

-2.6%

Net loss

$ (1,621)

-1.1%

$ (4,447)

-3.7%

Other information:

Company-owned and operated stores open at end of period (1)

60

57

The following table sets forth a reconciliation of net income to
EBITDA and Adjusted EBITDA for the periods shown:

The following table sets forth a reconciliation of net income to
EBITDA and Adjusted EBITDA for the periods shown:

39 Weeks Ended

39 Weeks Ended

October 28, 2012

October 30, 2011

Total net income (loss)

$ 10,050

$ (847)

Add back: Interest expense, net

24,372

24,553

Provision (benefit) for income taxes

(5,551)

(1,461)

Depreciation and amortization

45,573

39,873

EBITDA

74,444

62,118

Add back: Loss on asset disposal

1,952

1,018

Share-based compensation

866

853

Currency transaction (loss) gain

(13)

16

Pre-opening costs

1,798

2,758

Reimbursement of affiliate expenses.

855

721

Deferred amusement revenue and ticket

redemption liability adjustments

1,282

390

Transaction and other costs

3,201

552

Adjusted EBITDA (2)

$ 84,385

$ 68,426

NOTES

(1) The store count excludes one franchise location in Canada.

(2) EBITDA, a non-GAAP measure, is defined as net income (loss) before
income tax provision (benefit), interest expense (net) and depreciation
and amortization. Adjusted EBITDA, also a non-GAAP measure, is defined
as EBITDA plus (gain) loss on asset disposal, share-based compensation
expense, pre-opening costs, reimbursement of affiliate expenses, and
other non-cash or non-recurring charges. The company believes that
EBITDA and Adjusted EBITDA (collectively, “EBITDA – Based Measures”)
provide useful information to debt holders regarding the Company’s
operating performance and its capacity to incur and service debt and
fund capital expenditures. The Company believes that the EBITDA – Based
Measures are used by many investors, analysts and rating agencies as a
measure of performance. In addition, Adjusted EBITDA is approximately
equal to “Consolidated EBITDA” as defined in our senior secured credit
facility and indentures relating to the Company’s senior notes. Neither
of the EBITDA – Based Measures is defined by GAAP and neither should be
considered in isolation or as an alternative to other financial data
prepared in accordance with GAAP or as an indicator of the Company’s
operating performance. EBITDA and Adjusted EBITDA as defined in this
release may differ from similarly titled measures presented by other
companies.